Kiev Goes Alone Seeking Debt Overhaul as Creditor Talks Fail
- Kiev-creditor talks unsuccessful on debt terms, city says
- City to seek bondholder approval for 25% face value cut
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The City of Kiev is asking bondholders to approve new terms on $550 million in foreign debt after months of negotiations with a group of creditors failed.
Ukraine’s government will offer holders of notes issued by its capital city, which were due to mature on Friday and in July 2016, new sovereign bonds due 2019 and 2020 instead, the City of Kiev said in an e-mailed statement. Under the deal, investors would need to forgo 25 percent of face value and receive compensation in the form of warrants tied to the country’s economic performance. The Interfax news service reported the offer terms earlier Thursday.